- Refer to the Above Diagram

Multiple Choice

- Refer to the above diagram. When output increases from Q₁ and the price level decreases from P₁, this change will:

A) be caused by a shift in the aggregate supply curve from AS₁ to AS₂.
B) be caused by a shift in the aggregate supply curve from AS₁ to AS₃.
C) result in a movement along the aggregate demand curve from e₁ to e₂.
D) result in a movement along the aggregate demand curve from e₃ to e₁.